U.S. stocks rise after data, Merkel comments; Dow Jones up 0.61%

Investing.com - U.S. stocks opened higher on Wednesday, after a string of U.S. economic data and German Chancellor reiterated that she wants Greece to remain in the euro zone, while concerns over political turmoil in Athens remained.

During early U.S. trade, the Dow Jones Industrial Average rose 0.61%, the S&P 500 index added 0.76%, while the Nasdaq Composite index advanced 0.66%.

Sentiment strengthened after German Chancellor Merkel indicated that her government was willing to give more economic support to Greece to help the country remain in the euro zone.

In the U.S., official data showed that industrial production jumped 1.1%, above expectations for a 0.6% increase. Industrial production for March was revised down to a 0.6% drop from a previously reported flat reading.

The report came after data showed that the number of building permits issued in April fell to 0.715 million, disappointing expectations for a decline to 0.730 million, while housing starts rose unexpectedly in April, climbing to 0.717 million, confounding expectations for a decline to 0.680 million.

General Electric saw shares climb 1.96% after the company said it is buying two mining equipment firms, Australia's Industrea for USD700 million as well as a privately held U.S. company, as it seeks to boost its presence in a USD61 billion industry, according to a Reuters report.

Financial stocks were also broadly higher, as shares in JPMorgan jumped 1.46% and Bank of America climbed 1.51%, while Citigroup and Goldman Sachs added 0.76% and 0.68% respectively.

JPMorgan remained in the spotlight after announcing a USD2 billion loss last week. On Tuesday, the FBI said it had opened an inquiry, stepping up pressure on the bank after key U.S. agencies said they were looking into high-risk trades that first drew regulators' attention last month.

On the downside, retailer J.C. Penney dove 12.68% after posting a steeper-than-expected drop in first quarter sales late on Tuesday.

Rival company, Target surged 2.09% after posting higher earnings thanks to the warm weather and early Easter. The firm also raised its expectations for the year.

Meanwhile, investors continued to eye Facebook, following reports the company is set to increase the size of its initial public offering by 25% and possibly raise as much as USD16 billion, as strong investor demand for a share of the social network giant seemed to overshadow debates about the company's long-term money-making potential.

The news came as General Motors said it plans to stop advertising on Facebook, stating that the ads have little impact on consumers.

Other stocks in focus included Victoria's Secret parent Limited Brands, due to report earnings after the closing bell.

Across the Atlantic, European stock markets were higher. The EURO STOXX 50 rose 0.82%, France’s CAC 40 jumped 1.22%, Germany's DAX added 0.39%, while Britain's FTSE 100 edged up 0.04%.

During the Asian trading session, Hong Kong's Hang Seng Index plunged 3.1%, while markets in Japan’s Nikkei 225 Index dropped 1.2%.

Later in the day, the Federal Reserve was to publish the minutes of its most recent policy meeting.